ETF Watch: New Listings (April 25 - May 6)

By Matthew Hougan

NEW LISTINGS

Deutsche Bank Adds More Long, Short Commodities ETNs

Deutsche Bank (DB) has launched four broad-based commodities ETNs, adding to a rapidly growing lineup that already includes short and long ETNs covering gold and agriculture.

The new notes are linked to the Deutsche Bank Liquid Commodity Index and Deutsche Bank Liquid Commodity Index - Optimum Yield and include the DB Commodity Double Short ETN (NYSE: DEE), the DB Commodity Double Long ETN (NYSE: DYY), the DB Commodity Short ETN (NYSE: DDP), and the DB Commodity Long ETN (NYSE: DPU).

As their names implies, the DB commodity double short ETNs deliver two times the monthly inverse performance of the benchmark Deutsche Bank Liquid Commodity Index, while the DB commodity double long ETNs deliver two times the positive monthly performance of the index. The funds’ cash holdings track a monthly Treasury bill index, which will be included in their returns.

Each of the four ETNs is senior unsecured obligations of Deutsche Bank. The ETNs charge a 0.75% expense ratio.

View the prospectus for the four ETNs here.

ProShares Rolls Out Inverse Bond ETF

ProShares Advisors became the first ETF provider to launch an inverse bond exchange-traded fund this week with the launch of the ProShares UltraShort Lehman 7-10 Year Treasury ETF (AMEX: PST) and the ProShares UltraShort Lehman 20+ Year Treasury ETF (AMEX: TBT).

Both are designed to deliver twice the inverse of the daily performance of their underlying index. For example, if the Lehman Brothers 7-10 Year U.S. Treasury Index declined by 1% in a day, the UltraShort Lehman 7-10 Year Treasury ProShares should appreciate by 2%, and if the benchmark rose by 1%, the ETF should decline by 2%, before fees and expenses.

With bond funds, of course, the interest earned on cash and financial instruments also figures to contribute to overall performance results.

The funds each charge expense ratios of 0.95%.

View the prospectus for the four ETNs here.

• More on choosing the right ETF

Comments

[sbenard:]

I have been eagerly awaiting these. Hurray!
I am curious to see in the future if these inverse commodity ETFs keep a lid on commodity prices. I doubt it, but will be watching to see.

2008 May 11 09:34 PM